Impact Minerals (ASX:IPT) is preparing to define drill targets at its Mulga Tank project in Western Australia where mineralisation is considered similar in style to the geology of massive nearby mines.
Recent completion of a three-month geophysical and soil geochemical program has greatly improved Impact’s geological understanding at the site, particularly in the Mulga Tank Dunite and Panhandle prospect areas.
Final results from the surveying are expected within two weeks, allowing for the possible definition of drill targets where three styles of nickel-copper mineralisation have already been identified.
The nature of the rocks is considered similar to those that host the significant nickel deposits at Perseverance (1 million tonnes of contained nickel) and Mt Keith (>2 million tonnes of contained nickel) near Leinster, WA.
In addition, the project area occurs in the same geological terrane as the recently discovered Gruyere deposit of more than 5 million ounces of gold.
Assays at Mulga Tank Dunite have recorded 2 metres at 1.3% nickel, including 1 metre at 2% nickel and multiple 0.5-metre-thick zones of 0.5% to 1.2% nickel within an intercept of 115 metres at 0.3% nickel.
Other thick intercepts have included 21 metres at 0.4% nickel and 59 metres at 0.3% nickel.
Mulga Tank covers 420 square kilometres and is believed to have the potential to host more than 1.5 million tonnes of nickel metal.
A new nickel field?
Mulga Tank’s potential for multiple deposits also implies potential for the definition of a new nickel camp and further establishment of the broader region as an emerging nickel-copper province in WA.
Extensive sand cover has hindered exploration in this area resulting in a very poorly explored greenstone belt ripe for development by the likes of Impact.
Work by the company, however, has only focused on 15 square kilometres over Mulga Tank Dunite, suggesting important upside in the company’s ongoing exploration efforts.
So far, four of six targets tested have returned high-tenor nickel and copper in komatiites, veins and dunite.
These results have been delivered in a region that hosts not only Perseverance and Mt Keith, but also the Nova-Bollinger, Camelwood and Collurabie nickel deposits.
Analysis
The new data at Mulga Tank is important in that it greatly improves the geological understanding of the entire project area, especially at the Mulga Tank Dunite prospect, which is considered highly prospective for large deposits of nickel sulphide.
Mulga Tank Dunite hosts individual geological layers which can now be traced out for the first time.
A detailed interpretation of this data is in progress and is expected to assist in identifying drill targets under the project’s deep sand cover (at least 50 metres thick in most places).
The fact that the immediate Mulga Tank area has been so poorly explored gives Impact a first-mover advantage as a drilling program comes closer to reality.
The project’s prospectivity for gold is also significant given the proximity of Gruyere and will be a focus of Impact’s forward program.
Since Mulga Tank was purchased for $275,000 with a received co-fund grant of $150,000, it represents a significant value-add opportunity for Impact for a minimal acquisition expense.
The upcoming results from the surveying campaign and the possible subsequent drilling could represent substantial price catalysts for Impact, which has seen its shares gain 62% in value over the past three months to A$0.034.
Further price catalysts could also result as early as next week from the release of downhole electromagnetic (EM) data and assays from the company’s Broken Hill polymetallic project in New South Wales.
Applications for statutory environmental permits have been lodged for drilling at the project’s Platinum Springs prospect where a strong EM conductor has been identified.
Approvals are expected by mid-December, possibly sooner.
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